Evaluate different alternatives available to SRI: 3a. Continue doing business with Macdonald -What points should SRI stres
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3. Evaluate different alternatives available to SRI:
3a. Continue doing business with Macdonald
-What points should SRI stress to Macdonald’s management in order to
keep doing business in the future (hint: focus on ‘average collection
period, avg. age of inventory, average payable period, cost reductions
etc.)? How can SRI present some convincing arguments to Macdonald
to do business differently and to look after SRI’s interests?
-Show some simple calculation explaining the benefits of average
collection period reduction, the average age of inventory reduction (for
Macdonald).
In light of all alternatives, what action would you take with respect to Macdonald
Stationery and Office Supplies Limited account and the distribution of SRI
products in Atlantic Canada?
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